Elasticity of demand

If Ed = 0.2, elasticity of demand is :

• Elastic demand

• Perfectly elastic demand

• Inelastic demand

• Unitary elastic demand

Luxuries have inelastic demand

• True

• False

There is elastic demand if price and total expenditure move in :

• Same direction

• Opposite direction

• Any direction

• Remain constant

In case of inelastic demand, demand curve will be :

• Steep

• Flat

• Parallel to Y axis

• Parallel to X axis

Price elasticity of demand for a Matchbox (low price commodity) will be:

• Elastic

• Inelastic